NVIDIA Pays $5.5 Million Fine After Failing To Disclose 2018 Crypto Revenue

[trsttte]

They made more than 100 million $ from crypto sales. Less than 5% fine is like nothing....less than a tip you give to a waiter at the restaurant. This fine is a stupid joke!

nuja.
taxes were paid on the sales profit, hopefully.
and 5.5 million is actually not much. but it's a start. next time, just add 2 zeros and it will come across as meant.
basically, everyone can do what he thinks is right with his graphics card. that's why it will probably be a little low.

This is not about whatever ammount of money they made, it's about misleading investors regarding the way the company was growing: growth was backed by crypto sales (which have periodic booms and busts) instead of growing computer/datacenter market.

All the "crypto isn't responsible for the GPU shortage" people, where are you now?

In the same place they were before this settlement, this case pertains to 2018, you can say that again when Nvidia has to settle again for the same thing around 2025 or 2026

 

[Mad_foxx1983]

A drop in a bucket

 

[ThrashZone]

Hi,
What were the NV reported profits of mining in 2021 & 2020

Waiting for another adopt a mining card/ give them a gaming life pr statement again

 

[plastiscɧ]

This is not about whatever ammount of money they made, it's about misleading investors regarding the way the company was growing

the investors are indeed the ones who suffer -
they were deprived of their meager dividends..

 

[neatfeatguy]

Fines like this only encourage companies to do shady business tactics.

 

[Valantar]

Yall don't know what the SEC do, do ya? All they do are wrist slaps. You want fines, look at shitadel, they pay tens of millions like every other year for the last two decades. Shitadel raked in 6.7 Billion in 2020 vs 700K in fines. Ya think they are gonna stop screwing the market over?


Nah, it is a joke. SEC are clowns.

Considering they've been systematically weakened and built down over the course of decades under administrations consistently favouring neoliberal, laissez-faire economics, that's hardly a surprise. If a regulatory organ has its effective means of enacting regulation deconstructed and broken, it becomes ineffectual. That's a given.

 

[chrcoluk]

Fines are supposed to deter, if paying a fine is profitable then the fine is inadequate.

 

[looniam]

Nvidia won that billion-dollar crypto mining lawsuit

Claims that Nvidia misled investors into believing game-likers were buying up all the GPUs were dismissed.

www.pcgamer.com

so can the investors get a round 2?

a billion sounds more like it.

 

[thesmokingman]

Considering they've been systematically weakened and built down over the course of decades under administrations consistently favouring neoliberal, laissez-faire economics, that's hardly a surprise. If a regulatory organ has its effective means of enacting regulation deconstructed and broken, it becomes ineffectual. That's a given.

No, they are weak not weakened by whatever politics you're suggesting. They are clowns because like other industry regulators they have a revolving door for insider executives.

Look at this idiocy, Gensler mentions Madoff but ironically it doesn't connect that one of the biggest issues with the market right is payment for orderflow which is a gift from Madoff.

 

[Valantar]

No, they are weak not weakened by whatever politics you're suggesting. They are clowns because like other industry regulators they have a revolving door for insider executives.

.... that is literally an example of what I'm talking about. Privatization of public functions and "letting businesses self-regulate" is at the core of neoliberal policy. This is a willed political development traceable back to Milton Friedman and Reagan, though continued and built on since then by essentially every US administration since, just to somewhat varying degrees.

One thing worth bringing up here: there seems to be some confusion as to what this fine is about. It's not a fine for selling cards for crypto mining, which is implied by comparing the fine to the revenue from such sales. It's a fine for misleading shareholders, specifically presenting (highly volatile and unpredictable) cryptomining revenues as if they were (stable and predictable) gaming revenues, which can mislead investors into seeing the company's growth as more stable and reliable in the long term than it actually is. This has no direct relation to the amount of revenue in cryptomining sales outside of it being significant enough to make a dent in overall revenue figures. Beyond that, the number is arbitrary and the link between the revenues in question and the fine is vague at best. If the fine is to be seen as punitive up against a specific number, that number must be any uptick in share price due to increased demand due to them playing off this crypto revenue as if it were gaming revenue - which obviously makes it incredibly difficult to gauge, but it's most likely not even close to the sum of crypto revenues themselves.

 

[80251]

Are fines tax deductible expenses?

 

[eidairaman1]

It's actually less than 0.0012%, but... who cares. Once a company gets to a certain size, it makes more sense to pay a fine than to 100% adhere to certain rules and regulations.

Except the fines compound yearly now for failure to report.

Are fines tax deductible expenses?

Nope

 

[wolf]

All the "crypto isn't responsible for the GPU shortage" people, where are you now?

While crypto certainly played it's part in a shortage of GPU's able to be purchased by gamers, it wasn't solely responsible, as your statement could easily be interpreted to infer. I'd be very interested if this was in some way quantifiable along with the other factors which contributed to the shortage of supply against record demand.

 

[80251]

Just out of curiosity, if nvidia pays the fine(s) doesn't that result in them reporting less income and therefore, paying less corporate income tax?

 

[AusWolf]

While crypto certainly played it's part in a shortage of GPU's able to be purchased by gamers, it wasn't solely responsible, as your statement could easily be interpreted to infer. I'd be very interested if this was in some way quantifiable along with the other factors which contributed to the shortage of supply against record demand.

I meant that a lot of people claim that crypto either isn't responsible for, or plays an insignificant part in the GPU shortage. Nvidia seems to be admitting now that this isn't the case. It would definitely be quantifiable if they hadn't falsified their records.

 

[Valantar]

I meant that a lot of people claim that crypto either isn't responsible for, or plays an insignificant part in the GPU shortage. Nvidia seems to be admitting now that this isn't the case. It would definitely be quantifiable if they hadn't falsified their records.

It's also worth pointing out that that is only the portion of crypto sales that were direct sales from Nvidia, not crypto sales of consumer products from consumer-facing retailers.